for the Multifamily Sector

Transcription

1 One-Stop Shops for the Multifamily Sector The need for owners to navigate a complex landscape of clean energy and water programs greatly inhibits participation in multifamily efficiency programs nationwide. Yet, millions of lower-income rental households could significantly benefit from efficiency services, and save an aggregate of $9.2 billion annually as a result. 1 To capture these savings and provide streamlined and straightforward access to programs tailored to this sector s needs, jurisdictions are increasingly offering comprehensive one-stop multifamily programs. COMPREHENSIVE ONE-STOP-SHOP SERVICES A one-stop shop can provide coordination across electricity, gas, and water programs. Because these services are often supplied by different entities, program administrators may not encourage projects that aim at comprehensive savings. A one-stop shop can assist owners in capturing the savings across all fuels and water. n A single point of contact n A universal intake application n Comprehensive technical assistance n Streamlined access to all multifamily A one-stop shop provides building owners access to integrated program services through a single point of contact. Program experience shows that building owners benefit from access to individuals who can help navigate program offerings and provide project ONE STOP SHOP 3x 7x One-stop-shop, wholebuilding programs can lead to three times as much savings in energy costs AND seven times the uptake rate as other energyefficiency programs.* development and technical assistance, such as initial assessments, audits, and project support. These single points of contact can become trusted advisors to local building owners. The people in this function should be able to provide robust technical assistance and build relationships with local partners, such as lenders, contractors, and utility staff. A single point of contact should be able to assess entire portfolios in order to identify which programs meet the needs of individual properties and avenues for leveraging multiple funding sources. A SINGLE POINT OF CONTACT (SPOC) ASSISTS AN OWNER THROUGHOUT THE RETROFITTING PROCESS ADMIN SINGLE POINT OF CONTACT Pipeline Development Customer Intake Project Selection Project Planning & Funding Project Approval Installation / Construction QA/QC Inspection & Project Wrap-up Ongoing Monitoring CUSTOMER-OWNER Image Source: Elevate Energy CONSTRUCTION MANAGER I 1 I CONTRACTORS

2 IDENTIFYING THE ELEMENTS OF A COMPLETE ONE-STOP SHOP ELEMENT INCOMPLETE ONE-STOP SHOP TRUE ONE-STOP SHOP Navigating Offerings Customer Intake Initial Assessments and Audits Project Development and Approval Identifying Funding Sources and Financing Options Hiring Contractors Construction Process Quality Assurance SPOC refers customer to other programs. Customer fills out multiple applications. Limited assessment is based on what an individual program offers. Customer makes decisions regarding which measures to incorporate without much guidance or flexibility. Only applies utility incentives specific to program. Does not include outside sources (e.g., bill repayment or Property Assessed Clean Energy Programs (PACE)). List of qualified contractors may be provided, but scoping assistance is not provided. Clients may have to find their own contractors or may have limited flexibility in choosing contractors. Client must handle all communications with contractors. Inspections occur only after installation and may not cover all work. SPOC coordinates access to other programs or has agreements in place for co-delivery. A single application streamlines the process. SPOC assists customer with enrolling and applying. Comprehensive audit provides utility benchmarking to gauge efficiency compared with peers and evaluates electric, water, gas, and non-utility upgrade opportunities. Energy auditor uses audit information to develop a recommended scope of work, including a comprehensive set of improvements, installation costs, available utility incentive programs, available financing options, and economic benefits. SPOC supports customer in making final project decisions. SPOC assists with coordination of rebates, incentives, and financing options. Develops relationships with institutions (e.g., Community Development Financial Institutions, PACE, and housing institutions). Client is provided with a list of qualified and available contractors. SPOC helps customer evaluate bids and select contractors, and facilitates scheduling to ease the administrative burden on the owner. SPOC is involved in communications with contractors and project managers, and monitors progress. Quality inspections on 100% of participating properties. Inspections are done during installation when necessary, and at project completion. Ongoing annual benchmarking services are provided. If quality issues arise, SPOC returns to site to resolve issues. SPOC ensures that all utility incentives are obtained. IS A ONE-STOP SHOP NECESSARY? A one-stop shop has many benefits. However, it may not be well suited to all cases. Establishing a one-stop shop requires time and resources and may require some significant restructuring of program outreach and delivery. If the program landscape is already relatively easy to navigate and owners have access to robust technical assistance, a one-stop shop may not be the best strategy. Also, property owners planning minor upgrades may not require the assistance of a one-stop shop; a direct install program could be sufficient for owners who are not prepared to make major investments in upgrades. I 2 I

3 ONE-STOP-SHOP PROGRAMS BREAK DOWN THE BARRIERS TO MULTIFAMILY CLEAN ENERGY AND WATER IMPROVEMENTS BARRIERS Many fragmented programs overwhelm potential participants who must navigate dozens of options. Lack of targeted outreach efforts results in incomplete awareness of available programs, the spread of inaccurate information, and low program uptake. Disparate eligibility requirements across programs confuse potential participants, create a barrier to entry, and result in complex and often duplicative application requirements. The administrative burden of leveraging multiple programs is a disincentive to owner participation and requires excessive and often redundant documentation to be submitted by both tenants and owners. BEST PRACTICES Provide access to separately administered programs through a single point of contact. Form partnerships, including best-practice groups focused on program alignment, owner- association partnerships, and community partnerships that promote education and outreach efforts. Provide technical assistance throughout the retrofit process. Difficulty in gaining access to funding prohibits many affordable property owners with limited capital from financing retrofits. Misaligned funding cycles make it very difficult to leverage multiple programs for a single scope of work. In addition, many funding options have short, one-year program cycles that do not allow for substantial whole-building retrofits. The administrative burden and difficulty in truly integrating disparate programs often results in minimal savings achieved through partial energy-efficiency measures that do not include all potential energy-efficiency improvements and do not integrate water-saving opportunities. Provide technical assistance throughout the retrofit process. Form partnerships with finance and lending institutions. Guarantee program funding and program budgets for at least three years. Assure integrated scopes of work and count savings across electricity, gas, and water programs by designating a lead administrator that accounts for savings and budget sharing as part of its administrative process. I 3 I

4 CALIFORNIA S LOW INCOME WEATHERIZATION PROGRAM (LIWP) The LIWP provides whole-building energy-efficiency and solar services to low-income single and multifamily homes in disadvantaged communities, as designated by the California Environmental Protection Agency. It provides incentives for up to 100 percent of solar installations and 80 percent of energy-efficiency upgrades. A Single Point of Contact The Association for Energy Affordability (AEA), acting as an SPOC, assists with the coordination of rebates and incentives, the procurement of appropriate contractors, and on-site property assessments, among other services. BARRIERS ADDRESSED: Many fragmented programs, market confusion, lack of targeted outreach efforts, administrative burden, lack of owner capacity, and multiple decision makers Maximize Energy and Bill Savings The LIWP is the first program in California to break down the silos of energy efficiency, solar PV, and solar thermal by providing all three offerings to property owners through the same program and single implementation model. The program has saved an average of 44 percent of properties energy usage. BARRIER ADDRESSED: Fragmented programs resulting in minimal savings achieved and administrative burden LOW-INCOME ENERGY AFFORDABILITY NETWORK (LEAN) AND THE MASSACHUSETTS UTILITIES LOW INCOME MULTIFAMILY RETROFIT PROGRAM (LIMF) LEAN operates the various LIMF programs offered by gas and electric companies in Massachusetts. This program provides gas energy upgrades to about 6,700 units annually and electric energy upgrades to 14,500 units, achieving average savings of 20 percent. Statewide Coordination The program provides coordination between multiple utilities and the affordable housing community through its advisory committee. A bestpractices group, which includes utility program administrators, meets regularly to align program incentives and requirements across utilities and to consider incorporating new measures. BARRIER ADDRESSED: Many fragmented programs, market confusion, and disparate eligibility requirements Technical Assistance The SPOC helps with a full range of tasks, including gaining access to the WegoWise benchmarking tool, energy audits, development and approval of a scope of work, obtaining grants, project management, assigning a contractor to carry out the work, and quality assurance. BARRIERS ADDRESSED: Many fragmented programs, market confusion, lack of targeted community outreach efforts, administrative burden, lack of owner capacity, and multiple decision makers I 4 I

5 ELEVATE ENERGY AND COMMUNITY INVESTMENT CORPORATION MULTIFAMILY ENERGY EFFICIENCY PROGRAM (CHICAGO) The Multifamily Energy Efficiency Program is a comprehensive energy retrofit program of Elevate Energy that targets existing subsidized, affordable, and mid- to low-income properties in the Chicago area. Since the program began in 2008, more than 61,000 apartment units have been assessed and more than 27,000 of those units have been retrofitted as of March 31, 2017, achieving between 20 and 30 percent energy savings. Funding Partnerships The program partners with Community Investment Corporation (CIC) provide owners with access to funding. CIC loans and grants have provided more than $27 million for retrofit projects. BARRIER ADDRESSED: Difficulty gaining access to funding ENERGIZE DELAWARE OFFERS ONE-STOP-SHOP ENERGY SERVICES AIMED AT BOTH LOW-INCOME CUSTOMERS AND AFFORDABLE MULTIFAMILY BUILDING OWNERS The Delaware Sustainable Energy Utility (DESEU) is a nonprofit organization offering a one-stop resource through its Energize Delaware initiative to help residents and businesses save money through clean energy and efficiency. The DESEU was created in 2007 by the state to foster a sustainable energy future. DESEU recently launched two pilot programs Community Energy Centers and Affordable Multifamily Housing. Partnerships, Education, and Outreach DESEU is partnering with the Philadelphia-based Energy Coordinating Agency (ECA) to launch a pilot program of Community Energy Centers in Delaware. ECA will coordinate and optimize the delivery of energy assistance, education, and conservation services to low-income Delaware residents. ECA has been providing comprehensive solutions to Philadelphia s energy poverty problem for more than 30 years through a citywide network of 14 Neighborhood Energy Centers (NECs) where counselors provide more than 50,000 energy services to approximately 20,000 low-income households every year. DESEU is partnering with two nationally recognized nonprofits, New Ecology, Inc. and Elevate Energy, which are applying their one-stop-shop expertise to create a comprehensive program that combines technical assistance with identifying financial incentives and low-cost financing. The Affordable Multifamily Housing Program helps multifamily building owners identify, plan, and implement energyefficiency and renewable energy upgrades. BARRIERS ADDRESSED: Lack of targeted community outreach efforts Comprehensive Approach The whole-building approach addresses all opportunities for savings (electricity, gas, oil, propane, water, etc.) and addresses common area and in-unit upgrades to heating systems and the building envelope. BARRIER ADDRESSED: Many fragmented programs and minimal savings achieved I 5 I

6 FOR MORE INFORMATION California s Low-Income Weatherization Program (LIWP) Call or visit: Low-Income Energy Affordability Network (LEAN) Call or visit: Elevate Energy and Community Investment Corporation s Multifamily Energy Efficiency Program Call or visit: Energize Delaware s Community Energy Centers Call or visit: Energize Delaware s Affordable Multifamily Program Call or visit: or I 6 I

7 ABOUT ENERGY EFFICIENCY FOR ALL Energy Efficiency for All (EEFA) is a project of the Energy Foundation, National Housing Trust, Natural Resources Defense Council, and Elevate Energy. The mission of the EEFA project is to bring together the energy and housing sectors to tap the benefits of energy efficiency for millions of Americans living on limited incomes. We work with a range of partners in 12 states to promote effective utility energy efficiency programs for affordable building owners and healthy and affordable housing for residents. We blend expertise in affordable housing, energy efficiency, building ownership, and utility engagement. We work to support local groups by providing tools and resources that can help them increase energy efficiency opportunities for underserved tenants in their states. Sources: 1 U.S. Department of Housing and Urban Development, Quantifying Energy Efficiency in Multifamily Rental Housing Accessed April 12, *Source: Evergreen Economics, PY 2011 Energy Savings Assistance Program Impact Evaluation Final Report, p. 40 (August 30, 2013). Information Referenced: Energy Upgrade California programs in N. California (whole-building multifamily pilots) are achieving an average of 16-22% savings for less money per-unit than ESAP, which is achieving 3-9% savings on average and likely less in multifamily units. Uptake rate refers to the percentage of projects that are completed following initial customer outreach. Energy Efficiency For All, Program Design Guide: Energy Efficiency Programs in Multifamily Affordable Housing, May Information Referenced: More than 40 percent of the energy audits provided by the program have resulted in installed projects. Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program, Meredith Fowlie, Michael Greenstone, and Catherine Wolfram, June Information referenced: An aggressive encouragement intervention increased WAP participation from less than 1% in the control group to about 6% in the encouraged group. I 7 I 7 I

8